Ethereum in 2019: Is it Dying or Just Getting Started?
Ethereum has been hailed as one of the most exciting technologies to emerge in recent years, capturing the attention of some of the best and brightest minds in the tech and finance sectors. Despite concerns, Ethereum is not dying; in fact, it is preparing for a brighter future. This article explores why Ethereum is here to stay and why it continues to be a game-changer in the world of decentralized finance (DeFi).
Who is Vitalik Buterin?
Vitalik Buterin, the creator of Ethereum, is arguably the most recognizable figure in the cryptocurrency world. Born in Russia, Buterin came up with the concept of Ethereum before he turned 20, creating a decentralized network that could support smart contracts and dApps (decentralized applications).
Brazil of Blockchain: A Cult Following and Active Community
The Ethereum developer community is one of the largest in the world, with an estimated 200,000 members. The development framework for Ethereum, Truffle, has surpassed 3.3 million downloads. Github, the home of open-source developers, boasts 14,000 repositories and 220,000 commits related to Ethereum. MetaMask, a browser extension that allows users to run dApps without running an entire Ethereum node, has reached over 1 million users.
2020: The Year of DeFi
One of the most significant developments that have increased the demand for Ethereum is the massive growth of decentralized finance (DeFi).
Total Value Locked in DeFi
The total value locked in DeFi protocols has risen to 6.92 billion, with popular protocols like Compound, Maker, Aave, Synthetic, and Curve Finance seeing a substantial increase in users. More and more people are recognizing the advantages of DeFi protocols and exploring ways to benefit from them. DeFi dApps allow users to create stablecoins, lend money, earn interest, take out loans, exchange assets, long or short assets, and more.
Ethereum 2.0: Upgrades and Scalability
Despite the coronavirus outbreak, the Ethereum team made significant progress in solving the scalability issue by launching the Ethereum 2.0 testnet on August 4. The developers expect the upgrade will be completed in three stages, making the Ethereum network faster, cheaper, and more scalable without compromising decentralization and network flexibility.
Staking: A Motivation for Purchasing Ethereum
Staking, a more advanced feature, offers an average annual return of around 5%. Users only need to install a wallet and put at least 32 ETH to start staking. This is significantly cheaper compared to the interest offered by traditional banks.
Adoption by Major Corporations
The progress of Ethereum 2.0 has set the stage for the world’s largest corporations to start using the Ethereum blockchain. Samsung included an Ethereum wallet in its phone development and launched a software kit for Ethereum developers. Another significant partnership involved internet browser Opera, which launched an Ethereum-supported Android wallet and a built-in Ethereum wallet for iOS users.
Meanwhile, Microsoft continued its involvement with the Ethereum ecosystem by releasing the Azure Blockchain Development Kit to support Ethereum development. The company also launched Azure Blockchain Tokens to help enterprises issue tokens on Ethereum.
Is Ethereum a Good Investment?
Deciding whether Ethereum is a good investment is up to you, but one of the best choices is through OKEx. Currently, the largest Ether futures exchange by open interest, OKEx constitutes 26.179 million of the global tally of 672 million. OKEx also offers futures trading for Ethereum with weekly, bi-weekly, and monthly contracts available.
Conclusion
Ethereum is not dying; in fact, it is poised for a brighter future as it continues to innovate and evolve. From its growing DeFi ecosystem to the progress of Ethereum 2.0, the community around Ethereum shows no signs of waning. As the industry continues to grow and corporate adoption increases, Ethereum remains a strong contender in the world of decentralized finance.